“We see a wide range of possibilities around the newly acquired AI (artificial intelligence) business and find its economic moat indeterminate, and that it also poses a material threat of value destruction to the company, which limits our overall economic moat rating to narrow,” he notes in his report dated June 12 (US time).
SpaceX’s shares, priced at US$135 ($173.05) at its initial public offering (IPO), are “significantly overvalued” due to the “wide range” of likely financial outcomes, says Morningstar analyst Nicolas Owens.
The company debuted on the Nasdaq on June 12 with shares trading at US$150, 11% above its IPO price. SpaceX, now the sixth most valuable US-listed company with a market capitalisation of US$2.1 trillion, closed the day at US$160.95.
